226 Pension advice

[194762]

Hi
I have 3 x old 226 style Pensions (with Aviva) and i have been given the option of 25% cash free lump sum and the rest in annuities. Does anybody know if these pensions can be converted to draw down? I would prefer this to having an annuity.

[Simpo Two]

No, but you could ring them up and ask. Nobody will know about them better than they do.

[Green1man]

Do any of your plans have Guaranteed Annuity Rates? If so these will be very valuable and the annuities would,likely be your best option. Have you actually had quotes for the lump sum and monthly amount?

What values are we talking about? Professional advice may be a good idea.

[Robert-q32ja]

Many s226 pensions have useful benefits that Personal Pension Plans/Sipps etc do not have. For example the tax free cash % might be higher than 25% (the s226 rate was 3 times the annual annuity from memory) and as mentioned there might be useful annuity rates that are much higher than current rates.

Some Aviva (ex Norwich Union and Commercial Union etc) plans might have these, so you must explore options carefully before doing something else. Suspect only correspondance Aviva have sent to far is the standard 'wake up' material which uses PPP rules and rates.

Drawdown etc was not around when s226 were inforce, so you might have to move elsewhere if that is what you want to do.

[194762]

Hi all.

Thank you so much for all the replies it is very much appreciated. I did request information from Aviva regarding all the options available, after approximately 5 weeks I received a single sided sheet of paper, just stating the transfer value of one pension. That was Saturday and i will be getting in touch again today. I will hopefully speak to someone who is better informed than the front of desk person I spoke to last time.

Regards